Doubts on Victorian public housing reform

Ian Munro and Marika Dobbin

Looming reforms to public housing in Victoria will fail without increased federal spending and better conditions for private renters, according to an urban policy specialist.

Professor Terry Burke of Swinburne University said demand for public housing was driven partly by renters seeking more security than they had in the private sector.

The state government is preparing for a shake-up of public housing, which the state auditor declared this year to be financially unsustainable.

Flagging stricter controls over tenure and the need for a financially stronger sector, Housing Minister Wendy Lovell has warned that ''the status quo is not an option''.

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A spokeswoman for Ms Lovell said the government was assessing more than 1000 responses to its discussion paper. She said long-term tenure would continue for people with severe disabilities and aged pensioners, while others would be offered ''a pathway'' out of public housing.

But Professor Burke said the biggest problem was federal spending cuts to public housing since the Howard era. He said the state's plan to encourage people out of public housing suggested they did not know their own clients. ''They don't seem to understand their own data which shows that the bulk of their tenants are on Centrelink benefits,'' he said.

''I think we have to look at greater security of tenure in the private rental sector because many tenants apply for pubic housing not just for affordability, but for fear of eviction in the private market and the lack of security in their lives,'' he said.

The Victorian Equal Opportunity and Human Rights Commission has found that single-parent families bore the brunt of the state's housing affordability crisis, commonly rejected more than 10 times in applications for rental property.

Widespread illegal discrimination can lock such families into a cycle of disadvantage and bad health, including poor mental health, the report found.

Single mother Trish Harvey, of Heidelberg Heights, said she was rejected more than 50 times for rental homes even though she had good references. That left her and daughter Shea, 15, homeless for two years.

They spent most of that time in a shared hostel and recently got public housing after a decade on the waiting list. ''When you have a child depending on you, the thought you could be out on the street is terrifying,'' she said. ''It's had a dreadful effect on my daughter. She's very angry at me and our bit in life.''

''Children need a safe and secure environment to grow up in,'' she said. ''There are lots of reasons why people end up as sole parents and they work incredibly hard to make decisions in the best interests of their children.''

The Real Estate Institute of Victoria said it educated members about the law, but sometimes discrimination complaints were unfounded.

The Women's Information and Referral Exchange said landlords were cautious about single women with children, even when they worked and could afford rent.

17 comments so far

Howard said nobody complained to him about their house price going up. Well derrr. Pushing up house prices by reducing public housing at the expense of the disadvantaged in society is a pretty sick policy. Australia riding on the sheep's back and trampling the poor underneath.

Commenter

Allan

Location

Prahran

Date and time

August 21, 2012, 5:11PM

there should be a Pathway out of social housing so that it is available for those that need it most.

there are hundreds of taxis and work vehicles parked around the flemington commission flats - these employed people should look towards private renting or purchasing so that the accommodation can be made available to the genuinely needy.

they are declaring that income, aren't they?

Commenter

frank

Location

Date and time

August 22, 2012, 11:47AM

I live in that area Frank and I can reveal that many are single mothers with about 6 or more kids who are culturally married but not legally married. In other words they have a husband who has more than one wife and only one is legally his wife. The others that make up his 'harem' are not legally married but are married in their place of worship so it's 'culturally and religiously legal'. Meanwhile the man visits each wife on a different night of the week to do his 'duties' (making more children) and the kids are basically neglected. Oh yes, the husband also takes his cut and gives the 'wife' a meager allowance to subsist on. They do drive around in late model people movers though I have noticed so the local car industry is benefitting from the situation. I guess this point out the complications associated with dealing with the issue.

Commenter

Hugo a GoGo

Location

Date and time

August 27, 2012, 4:22PM

The problem is how little the DHS charge current commision housing tennants which is usually as little as $50 per week for large inner city houses with brand new carpet/airconditioning that would normally attract $400-$500 week rental costs. The amounts charged should be at least doubled, and then we might not see as many people who have community housing smoking or drinking all their welfare money in public parks during the middle of the day when they should be looking for a job. Another is that once a person is in commission housing, and they get a high paying job etc, their never again means tested to see if they still need it and DHS dont have the power to give the home to another family in greater need. The Department of Housing should sell all of its homes in the inner city suburbs that could be worth $750k and purchase 3 units for $250k each in the outer suburbs. Currently the only reason why they cant do this is because the tenants dont want to move from their great inner city location and DHS cant force them to move, well in my opinion, if you're living in a home basically for free at other taxpayers expense you should not be able to make such demands!

Commenter

Dan

Location

Melbourne

Date and time

August 22, 2012, 1:14PM

I am in public housing but I think you are right, the inner city sites could be sold of for a huge profit and people would just have to go where the housing is and it would be a boost to regional centres if new villages were built in around, Ballarat, Castlemaine, Traralgon, Mildura. It makes sense and would create an economy.

Commenter

Pickled Herring

Location

Frankston

Date and time

August 22, 2012, 3:45PM

Terrific idea, move already disadvantaged people to an area where there are even less services and less jobs. No, the government should continue on with the renewal program like the rebuild in Malvern Road. The old soviet style blocks should all be updated. Oh and it costs just as much if not more to build a highrise block in Ballarat as it does in Melbourne.

Commenter

Allan

Location

Prahran

Date and time

August 22, 2012, 4:40PM

Rent is 25% of income which makes the claim of $50 absurd . Brand new carpets and air conditioning ? Where do you get that from . Obviously not a person aware of how public housing works or how housing is maintained . A person renting privately pays the same rent as a public housing tenant if they get rent assistance and the rent is not extravagant ie outside the normal range . Trouble is finding private rentals at all .

Commenter

geomac

Location

Date and time

August 23, 2012, 12:47AM

"The problem is how little the DHS charge current commision housing tennants which is usually as little as $50 per week for large inner city houses with brand new carpet/airconditioning that would normally attract $400-$500 week rental costs."

Wrong.

"rent is either the market rent or the rebated rent, whichever is less and is 25 per cent of your total household income, for household members 18 years of age or over."

The problem isn't the Public Housing it is the lease agreements and tight tenancy laws. DHS need to bring in stringent guidelines to qualify for public housing including bonds and a graitutous period so if you become anti social or dont pay your rent you are out the door. It is a big big issue that residents are abusing the system with anti social behaviour, damage to property and not putting all those that reside at the residence on the lease. So they get away with paying cheap rent, are subsidised by someone working and living the good life. I have seen it time, time again I am in public housing. It is abused doen't matter what nationality, age or creed they all abuse the system, time to make it very strict to apply and though I am old I agree those living alone in 3 bedroom residence need to downsize for other families and infirmed needing a roof over their heads. I think the overhaul is long overdue.

Commenter

Pickled Herring

Location

Frankston

Date and time

August 22, 2012, 3:42PM

DHS regularly checks who is living in the premises and bar people for anti-social behaviour. If you know of a particular breach of the rules you can notify them. Oh and single people do not get 3 br houses.